Strategic Research On Overseas Mergers And Acquisitions Of Chinese Pharmaceutical Companies

As internationalization has been the main trend among Chinese pharmaceutical companies,and merge and acquisition(M&A)is one of the higher form of internationalization,many companies have treated it as their growth strategy and use it to improve international competition.However,pharmaceutical companies have still stayed in the exploring period,and there exists irrational and irregular situation.So there needs to analyze the current M&A situation deeply.The research focused on the healthcare industry,it aimed at analyzing each companies' strategy and M&A motivation by studying on the current landscape of overseas M&A and typical cases,compared with Takeda's overseas M&A experience,so as to provide strategic suggestions for Chinese companies' M&A in healthcare industry.Firstly,the research reviewed the theories of general M&A,Foreign Direct Investment(FDI),and overseas M&A as the foundation of the whole study.Then,as healthcare industry's specific characters,the study used the PEST model to analyze environment of healthcare industry,including political,economical,social and technical factors.At the same time,the research used the WIND M&A database to analyze the whole picture of Chinese healthcare companies' M&A in the past five years by descriptive statistics,including the amount,quantity,motivation,geographical distribution and categories perspectives.Secondly,as Takeda is the outstanding representatives of Japanese pharmaceutical companies and as among the top50 pharmaceutical companies globally,it has more than 200 years history,and its M&A has much influence on Takeda's development.So the research studied on Takeda's internationalization development and M&A experience,analyzing its four important overseas M&A cases' motivation and strategic influence on Takeda.Then,according to the healthcare industry value chain,the study chose four Chinese pharmaceutical companies' overseas M&A,and analyzed their inner and external environment,advantages and disadvantages,and M&A strategy,by using SWOT and Michael Porter five forces model respectively.Finally,the study summarized the current characters of Chinese healthcare companies' M&A,and provided some strategic suggestions.It can be found that the current M&A are dominated by strategic mergers and acquisitions,but lack experience in domestic accumulation period and international development stage,and the development history is relatively short.What's more,the current M&A focuses on increasing the specific node of value chain and has not been used for the purpose of purchasing blockbuster products.Last but not least,corresponding suggestions were made for each issue,and the overseas M&A strategy recommendations of Chinese pharmaceutical companies were put forward from the perspectives of overall strategy,regional perspective,and life cycle.It also definitely proposed that Chinese pharmaceutical companies should first consider the merger and acquisition targets along the “One Belt and One Road”.